Ondo Finance, a major player in real-world asset tokenization, has struggled in a bear market, dropping over 45% from its November 2024 high. However, with technical patterns signaling a reversal and fundamental growth in its ecosystem, the token might be gearing up for a comeback.
On Thursday, ONDO traded at $1.60, marking a 30% rebound from its 2024 low. While the price remains below previous highs, key indicators suggest a potential bullish breakout in the coming weeks.
Ecosystem Growth Fuels Optimism
One of the biggest drivers behind Ondo’s recovery is its expanding ecosystem. DeFi Llama reports that Ondo’s total value locked (TVL) has exceeded $1 billion, more than doubling from $541 million at the start of the year.
This surge is driven by two key tokenized assets:
- Ondo Short-Term US Treasuries Fund (OUSG): $419M in assets
- Ondo US Dollar Yield Token (USDY): $589M in assets
Both assets generate daily yields by investing in U.S. Treasury Bills, with USDY offering a 4.35% APY and OUSG yielding 4.03% APY.
Ondo’s Strategic Ties & Market Speculation
Ondo Finance has also drawn attention due to its connections with Donald Trump’s World Liberty Financial (WLFI). WLFI recently acquired 342,000 ONDO tokens, valued at over $400,000.
Additionally, speculation is growing about Ondo’s potential role in U.S. strategic crypto reserves, as the project was a top donor to Trump’s inauguration committee. This connection could boost investor confidence in the long run.
Technical Indicators Point to a Bullish Breakout
Ondo’s price action aligns with two bullish technical patterns:
- Falling Wedge Pattern: This pattern consists of two converging downward trendlines, which often indicate an upcoming breakout.
- Cup and Handle Pattern: The upper resistance level stands at $1.4825, with a projected breakout target of $2.4610, a 113% potential upside from the current price.
With both technical and fundamental factors aligning, could Ondo Finance be set for a major rally?
